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KSS eyes miniplex expansion in tier II and III cities
MUMBAI: Digital and entertainment company KSS Ltd (formerly K Sera Sera) is eying to expand its miniplex business to 180 screens, spread across 80 locations in Tier II and tier III cities, over the next five years.
The company, which sets up miniplexes as a joint venture with local partners, is looking at a total investment of Rs 90 crore (Rs 900 million) along with its franchisees.
While it claims to have around 80 screens under various stages of implementation, 17 being already operational and 13 to be added by the end of March 2015, it has set its eyes on smaller cities in states like Gujarat, Maharashtra, Uttarakhand, Punjab, Chhattisgarh, Uttar Pradesh, Madhya Pradesh, Rajasthan and Goa.
“We are expanding our reach to smaller towns as there is a huge opportunity to expand there than metro cities because the occupancy rates in these cities are almost 60 per cent, which is more than double than any multiplex or theatre of metro cities,” said KSS Miniplex CEO Mridul Vyas.
According to Vyas, there is a surge in demand in this miniplex segment as smaller towns and villages where most audiences are now able to view a new film soon after its all-India release. “With our expansion plan, we will be able to satisfy a greater number of cinema enthusiasts from smaller towns across India with all new releases first day, first show with similar facilities of multiplexes at an affordable price,” Vyas added.
KSS Miniplex, a division of KSS, was set up in 2010 with the objective of setting up miniplexes in a JV with local partners. The proposition includes planning, set-up, screening, operations and marketing. The partnership entails a profit share of 50:50 with the owner of the miniplex.
The company claims that the profitability of the current portfolio (KSS share) is around Rs 20 Lakh (Rs 2 million) per screen per year.
“With the number of operational screens set to grow manifold over the next couple of years, we would witness a significant growth in the revenue,” Vyas added.
At present, KSS Miniplex has a presence in Maharashtra, Gujarat, Punjab and Uttarakhand.